On the AllianceBernstein Blog,
Sharon Fay wrote about the importance of staying active in
equities, rather than passive investing. "We understand the appeal of passive
investing. It offers lower fees and simplicity. And many
investors are skeptical about the ability of active managers to
consistently beat a benchmark. Often, a passive portfolio can be
a good complementary component to an active allocation,
especially in large-cap developed markets," she said. "Yet
there’s also a lot of evidence supporting the benefits of an
active approach. Today, we see many risks that are hard to avoid
by hugging a benchmark—and opportunities that simply cannot be
captured by going passive."

Older advisors aren't the only ones who need to create a
succession plan. Instead of waiting until near
retirement, Anita Venkiteswaran, vice president at Focus
Financial Partners, has three suggestions to keep in mind when
planning for your business' future.

1. "Right fit. The most critical aspect of external
succession planning is finding the right firm match. The best
match happens when two firms not only share similar values and
principles, but also understand each other’s client niche,
service model and investment philosophy. There is likely no
identical firm to yours, but think through criteria that are
important to you in a firm that would serve your clients in your
absence. Make a list and prioritize them."

2. "Right time. Many people struggle with the question
– 'When is the right time to start putting together a viable
succession plan?' The answer is NOW. Whether you
are a $500 million dollar firm or a $25 million dollar firm,
whether you are 35 years old or 60 years old, your clients are
important to you and you should be thinking about them and their
future in your absence."

3. "Right value. ...Do not get hung up on the revenue
multiples being thrown out in the industry. Instead think about
how to build a business that can bring some value to the partner
you identified. Only then can you ensure that your family gets
some equity value out of the business that you have put your
blood and sweat into building."

Often clients will try to spread their assets among several
advisors in order to lower their risk. However, that leaves the
advisor with "a jumble of assets that don’t complement each
other and lack diversification," writes Bruce Fraser in Financial
Planning. To bring in all of a client's outside assets, advisors
should take a systematic approach, sit down with their clients,
and go over a financial plan and goals.

"Once advisors have mapped out a financial plan, as part of a
quarterly meeting cycle or a comprehensive annual review, they
can point out the benefits of consolidating assets under one
advisor, and the difficulty to monitor a financial plan if the
assets are spread in multiple directions," Fraser said.
"Technology is also playing a
bigger role. Some advisors are taking a holistic approach and
using account aggregation tools."

According to InvestmentNews'
Advisers on the Move database, only 58 veteran advisor teams
switched firms in the second quarter, down from 97 teams a year
ago. This is also lower than the 101 teams that moved in Q1.
Recruiters and executives have attributed this slowdown to market
highs and a strong economy.

"There is an overall slowdown,
not just for the quarter but if you look at the year in aggregate
the pie of advisers changing firms has shrunk," Tash Elwyn,
president of Raymond James & Associates, Inc, told
InvestmentNews. "The market at new highs certainly can lead to
higher satisfaction levels by clients, which then leads in turn
to higher satisfaction levels by advisers."

Financial abuse is an important problem especially among the
elderly, and advisors are in an advantageous position to
recognize and stop the issue. In a WSJ column, Paul Hynes at
HearthStone Private Wealth Management writes about tactics to
spot financial abuse.

"Financial elder abuse encompasses anything from the
unauthorized use of bank accounts to wire scams to deceiving or
even coercing someone to change their power of attorney," he
said. "Maybe the best way to prevent the financial abuse of
an elderly client is simply to keep in touch with them and
inquire about their lives. Checking in over the phone is helpful,
but advisers should really make an effort to see clients
face-to-face."

"Potential red flags include a change in living
conditions, like the addition of a full-time caregiver, for
example. In-home caregivers may have access to information about
the elder person's assets and accounts, and may be in a position
to exercise significant influence or control over the elderly
person," Hynes said.